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Intertemporal Pricing and Investment for Electric Power Supply

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  • John Rowse

Abstract

Building upon conventional activity analysis models of electric power supply, this paper presents a nonlinear programming model for endogenous determination of electrical energy prices, supplies, and capacity expansion increments, for use as a tool in quantifying intertemporal tradeoffs for an electric utility among prices and supplies and improved environmental quality or diminished production hazard. For illustrative purposes the model is applied to a Canadian electric utility to trace the price and supply consequences of foregoing an attractive hydro alternative with undesirable externalities and hypothetical legislation requiring the reclamation of certain land to be surface-mined in the future for lignite coal.

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  • John Rowse, 1980. "Intertemporal Pricing and Investment for Electric Power Supply," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 143-165, Spring.
    • Handle: RePEc:rje:bellje:v:11:y:1980:i:spring:p:143-165
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    Cited by:

    1. Rowse, John, 1980. "1. On User Solution Strategy for Mixed-Integer Linear Programming Models 2. On the Solution of Spatial Price and Allocation Models," Queen's Institute for Economic Research Discussion Papers 275172, Queen's University - Department of Economics.
    2. Peter Hartley & Chris Trengove, 1984. "The Marginal Costs of Electricity Supply in Victoria," The Economic Record, The Economic Society of Australia, vol. 60(4), pages 340-355, December.

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